By Alan Fein
(AXcess News) New York - Metals prices fell in London Wednesday due to strength in the U.S. dollar, Base Metals' Martin Hayes reports. Base metals contracts on the CMX were also lower.
Copper prices reached a two-month low on the London Metals Exchange at $7,825 before recovering to trade at $8,060 Hayes noted, while lead fell 2.7 percent largely due to an overhang of inventory. Nickel traded down at 22505 from 22700.
In the U.S. metals market, copper futures for July delivery on the Chicago exchange (CMX) dipped 2 cents per pound at $3.56, having reached a low of $3.54 per pound earlier.
Gold futures for August delivery on the CMX were flat, off $2.00 an ounce at $883.50 and Silver contracts for July delivery were down 14 cents at $16.70.
On the mining front, nickel exploration and development companies were actively pursuing projects with the Indonesian subsidiary of Canadian-based Inco Limited (INCL - Paris Exchange), International Nickel Indonesia (Inco), saying it expected to go ahead with plans to expand its annual production capacity despite the downfall in nickel commodity prices.
In the first quarter of 2008, the subsidiary of Canada's Inco Limited recorded a 12.01% increase in production to 20,140 tons of nickel in matte from 17,980 tons in the same period last year.
Vancouver-based Vangold Resources Ltd. (TSX.V: VAN; OTC: VNGRF) announced that it has commenced drilling on its Uganda property. Vangold made headlines in Canada earlier when AXcess News affiliate, Source Press, featured the company in a story relating to VAN's move in exploring for nickel in Uganda. The Company's property is situated over the border near one of the largest nickel mining developments in the world underway in Tanzania, where Barrick Gold Corp. (NYSE: ABX) and Xstrata PLC (LSE: XTA), the world's fourth largest nickel mining company, are developing what Barrick's president called a "worldclass mine".
Vangold is the largest concession holder in Uganda. Tuesday, Vangold announced that it had beefed up its key geological team with the appointment of Ms. Danae Aline Voormeij as a Vice President of Exploration. Voormeij is considered a savvy player in understanding the mining industry in Central Africa where Vangold's Uganda nickel property is located.
"Danae possesses a unique set of skills which we look forward to leveraging," said Vangold CEO Dal Brynelsen.
Vangold Resources released its first-quarter results minutes ago which indicated that the Canadian diverse energy and mining exploration and development company nearly doubled revenue compared to the same period last year to CA $568,000 for the period ending March 31, 2008 from CA $279,000 in the same year-ago period. Working capital rose from CA $5.9 million to CA $10.3 - which matched gains in Cash and Cash Equivalents of CA $5.7 million to CA $10.2 million respectively.
Sergei Blagov with InsideMetals reported that Russian-based Norilsk Nickel (OTC: NILSY; LSE: MNOD), indicated plans of a merger deal valued at a combined $140 billion. Norilsk is considered one of the world's top nickel miners. OAO Norilsk Nickel's main shareholder Vladimir Potanin and the iron-ore and steel group ZAO Metalloinvest Holding's major shareholder Alisher Usmanov, agreed to swap assets, Blagov reports.
European Nickel (LSE: ENK) has acquired an 18.7 percent direct stake of its partner Investika Ltd (LSE: NSN) in Berong Nickel Corp. as of Tuesday, though the deal is subject to shareholder approval.